PT Solid Gold Berjangka | Gold Holds Near Record as Traders Seek Clues on Rate-Cut Path
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Solid Gold Berjangka | Gold held just below a record after a two-day gain, with traders looking ahead to US data later this week that will offer clues about how the Federal Reserve will approach its rate-cutting cycle.
Bullion was little changed below $2,515 an ounce after gaining more than 1% in the prior two sessions following remarks from Chair Jerome Powell on Friday that cemented expectations for a cut at next month’s meeting. His stance was echoed on Monday by Fed Bank of San Francisco President Mary Daly, who said that she believes it’s appropriate begin reducing rates.
Key to the outlook will be US inflation figures due on Friday, which are expected to show the three-month annualized rate of core inflation down to 2.1%, just above the central bank’s 2% goal. Meanwhile, a reading on consumer spending is seen indicating that the Fed has been successful at keeping the expansion intact — which may weaken the case for aggressive easing.
Gold has surged by more than a fifth this year in a rally that’s been driven in part by optimism that the Fed was getting closer to a pivot. Lower US rates — which can pull the dollar and Treasury yields lower — tend to benefit bullion as it doesn’t pay interest. The metal has also supported by recent inflows into exchange-traded funds, as well as haven demand due to heightened geopolitical risks and uncertainty ahead of the US election in November.
Spot gold was steady at $2,514.32 at 8:46 a.m. in Singapore after peaking at $2,531.75 last week. The Bloomberg Dollar Spot Index was flat, following a 0.3% gain on Monday. Silver, platinum and palladium were little changed.
Source : Bloomberg